UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
DC 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF
THE
SECURITIES EXCHANGE ACT OF 1934
Date
of report (Date of earliest event reported) January 31,
2007
THE
CHILDREN’S PLACE RETAIL STORES, INC.
(Exact
name of registrant as specified in charter)
|
Delaware
|
0-23071
|
31-1241495
|
|
(State
or Other Jurisdiction
of
Incorporation)
|
(Commission
File
Number)
|
(IRS
Employer
Identification
No.)
|
915
Secaucus Road, Secaucus, New Jersey, 07094
(Address
of Principal Executive Offices) (Zip Code)
(201)
558-2400
(Registrant’s
telephone number, including area code)
Not
applicable
(Former
Name or Former Address, if Changed Since Last Report)
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
| o |
Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
|
| o |
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
| o |
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR
240.14d-2(b))
|
| o |
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR
240.13e-4(c))
|
Item
2.02 Results of Operations and Financial Condition
On
February 1, 2007, The Children’s Place Retail Stores, Inc. (the “Company”)
issued a press release regarding the Company’s preliminary financial results for
its third fiscal quarter ended October 28, 2006.
A
copy of
a press release relating to the foregoing is attached hereto as Exhibit
99.1
and is
incorporated in this Item 2.02 by reference.
The
information contained under this Item 2.02 shall not be deemed “filed” for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), or incorporated by reference in any filing under the Securities
Act of 1933, as amended, or the Exchange Act, except as shall be expressly
set
forth by specific reference in such a filing.
Item
5.02 Departure of Directors or Principal Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers.
(b)
On
January 31, 2007, Steve Balasiano resigned as Chief Administrative Officer,
General Counsel and Secretary, effective immediately. However, Mr. Balasiano
will continue as a Senior Vice President with continued supervisory
responsibility for the Company’s real estate, store design, re-modeling and
maintenance matters.
(c)
On
January 31, 2007, the new position of Executive Vice President, Finance and
Administration has been established and designated as a principal executive
officer together with the Chief Executive Officer. Susan Riley, currently the
Company’s Senior Vice President and Chief Financial Officer, has been selected
for this position, effective immediately. In this position, Ms. Riley will
be
responsible for supervision of the Company’s finance, treasury, accounting,
internal audit, legal and human resources functions, reporting to the Chief
Executive Officer and the Board. She will remain as Chief Financial Officer
on
an interim basis, pending completion of a search to fill this position.
Information regarding Ms. Riley’s employment relationship with the Company and
other biographical information is contained in Part III of the Company’s Annual
Report of Form 10-K, for the year ended January 28, 2006. In light of the
changes to Ms. Riley’s functions, the Company’s Compensation Committee is
considering appropriate adjustments to her compensation
arrangements.
A
copy of
a press release relating to the foregoing is attached hereto as Exhibit 99.2
and
is incorporated in this Item 5.02 by reference.
Item
8.01. Other Events.
On
January 31, 2007, the Company announced that the special committee of the Board
of Directors previously appointed to investigate the company’s stock option
grant practices completed its investigation and delivered its report and
recommendations for actions to be taken to the Board. In accepting the special
committee’s report, the Company also announced a series of actions and
decisions, including (i) the matters discussed in Item 5.02 hereof, and (ii)
the
separation of the positions of Chairman of the Board and Chief Executive
Officer, effective immediately. An independent director will be selected to
serve as non-executive Chair as soon as practicable. Sally Frame Kasaks,
currently the Lead Director, will continue in such position and act as Chair
until a Chair is selected. Ezra Dabah will continue as Chief Executive Officer
and as a member of the Board.
A
copy of
a press release relating to the foregoing is attached hereto as Exhibit 99.2
and
is incorporated in this Item 8.01 by reference.
Item
9.01. Financial Statements and Exhibits.
The
following exhibits are furnished herewith:
99.1
Press release of The Children’s Place Retail Stores, Inc. dated February 1,
2007
99.2
Press release of The Children’s Place Retail Stores, Inc. dated January 31,
2007
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
|
THE
CHILDREN’S PLACE RETAIL STORES, INC.
By:
/s/
Susan
Riley
Name:
Susan Riley
Title:
Executive Vice President, Finance and Administration
Dated:
February 1,
2007
|
EXHIBIT
INDEX
| Exhibit No. | Description |
| 99.1 | Press Release of The Children’s Place Retail Stores, Inc. dated February 1, 2007 |
| 99.2 | Press Release of The Children’s Place Retail Stores, Inc. dated January 31, 2007 |
FOR
IMMEDIATE RELEASE
THE
CHILDREN’S PLACE RETAIL STORES, INC. REPORTS PRELIMINARY THIRD QUARTER 2006
FINANCIAL RESULTS AND PROVIDES GUIDANCE
Secaucus,
New Jersey - February 1, 2007 - The Children’s Place Retail Stores, Inc.
(Nasdaq: PLCE)
today
announced preliminary financial results for its fiscal third quarter ended
October 28, 2006. These preliminary results may be subject to significant
adjustment as a result of the Company’s restatement of previously issued
financial results to correct the accounting for past stock option grants to
reflect the findings of the investigation into the Company’s stock option
practices, which were announced in a separate press release yesterday. As a
result, the Company is not providing year-to-date results, net income on a
per
share basis or full comparative financial results for the third quarter and
nine-months ended October 29, 2005, and is providing only selected balance
sheet
data.
Fiscal
2006 Third Quarter
| · |
As
previously announced, consolidated net sales for the third quarter
ended
October 28, 2006 increased 25% to $550.4 million compared to $441.0
million last year. Third quarter sales were comprised of $397.2 million
from The Children’s Place brand, a 24% increase over last year, and $153.2
million from Disney Store, a 27% increase over last
year.
|
| · |
Consolidated
comparable store sales increased 14% in the quarter. The Children’s Place
brand’s comparable store sales increased 15% on top of last year’s 6%
increase. Disney Store’s comparable store sales increased 12%.
|
| · |
Preliminary
operating income was $61.0 million, or 11.1% of net
sales.
|
| · |
Preliminary
net income was $38.0 million including equity compensation expense
of $3.2
million, pre-tax, under SFAS 123R, which the Company adopted at the
beginning of fiscal 2006. Also included in third quarter net income
was
approximately $4.2 million in pre-tax expense ($1.1 million of which
is
non-cash) primarily due to the cost of conducting the stock option
investigation and other stock option related expenses.
|
| · |
Preliminary
diluted shares outstanding in the third quarter were approximately
30
million shares.
|
| · |
During
the third quarter, the Company opened 30 Children’s Place stores and
closed one. In addition, the Company opened 11 Disney
Stores.
|
-
more
-
PLCE
- Preliminary Third Quarter 2006 Financial Results
Page
2
Guidance
Fourth
Quarter 2006
The
Company stated that, at this time, it anticipates reporting preliminary fourth
quarter fiscal 2006 net income of approximately $45 to $48 million, including
approximately $3.5 million, pre-tax, in equity compensation expense under SFAS
123R. This guidance reflects month-to-date January comparable store sales in
the
negative mid-single digits for The Children’s Place and positive mid-twenties
for Disney Store.
Also
included in the Company’s fourth quarter guidance are:
| · |
An
approximate $4 to $6 million tax benefit due to the utilization of
certain
foreign tax credits;
|
| · |
approximately
$9 million, pre-tax, in costs in connection with the stock option
investigation and tax implications related to outstanding grants.
These
costs are subject to significant adjustment pending the review of
the
Company’s determination of the appropriate accounting for its previously
issued stock options, related discussions with the staff of the Securities
and Exchange Commission, and clarification of certain tax laws and
their
accounting impact; and
|
| · |
approximately
$6 to $8 million in pre-tax write-offs due primarily to: i.) the
re-evaluation of a planned 42nd
Street store location in New York City to reflect configurations
currently
under consideration; and ii.) infrastructure investments that had
been
made in connection with Disneystore.com, as the Company is in discussions
with the Walt Disney Company to form an e-commerce alliance, in which
Disneystore.com would maintain a presence within Disney.com, in an
effort
to create a seamless experience for the guest.
|
Excluding
the three bulleted items shown above, preliminary fourth quarter net income
is
anticipated to be approximately $51 to $53 million. The Company has excluded
these items because it does not believe they are indicative of the core business
and that
it
is a beneficial supplemental disclosure to investors in analyzing its past
and
future performance.
Fiscal
2006
At
this
time, the Company anticipates reporting preliminary full year fiscal 2006 net
income of approximately $83
to
$86 million, including approximately $13 million, pre-tax, in equity
compensation expense under SFAS 123R, approximately $14 million, pre-tax, in
stock option investigation and related expenses, and the above referenced tax
benefit and write-offs.
The
Company anticipates a preliminary diluted share count for the fourth quarter
and
fiscal 2006 of approximately 30 million shares.
“Third
quarter results at both brands were strong, while the fourth quarter was
challenging at The Children’s Place and strong at Disney Store,” said Ezra
Dabah, Chief Executive Officer of The Children’s Place. “At The Children’s Place
brand, sales were impacted primarily due to lack of unit inventory ownership
and
weather patterns. Importantly, the fundamentals and competitive advantages
that
have made our business successful remain intact.”
Mr.
Dabah
continued, “At The Children’s Place, we are excited to announce the launch of
our new ‘store-within-a-store’ shoe concept, which we plan to roll out during
the upcoming back-to-school season. We believe our successful formula of great
fashion and high quality at value prices will fill a large void in the
marketplace, when applied to children’s footwear.”
-
more
-
PLCE -
Preliminary Third Quarter 2006 Financial Results
Page
3
Fiscal
2007
At
this
time, the Company anticipates fiscal 2007 earnings per share of approximately
$3.55 to $3.65. The Company anticipates a tax rate of 38% and 31 million diluted
shares outstanding. In addition, this guidance includes a provision of
approximately $6 million, in pre-tax expense to address issues with certain
recently remodeled Disney Stores. This guidance does not reflect any residual
expenses the Company may incur as a result of the conclusion of the stock option
investigation.
The
Company has recently commenced discussions with the Walt Disney Company
regarding potential modifications to certain terms of the Company’s long-term
license agreement to operate the Disney Store retail chain in North America,
some of which may be material. These discussions are still at an early stage
and, as such, the Company cannot predict the specific nature of any
modifications to the license agreement. If the Company is unable to reach
agreement with Disney on the modifications, Disney may assert that certain
defaults exist under the license agreement and Disney may reserve its rights
and
remedies under the agreement.
The
Children’s Place will host a conference call to discuss its preliminary third
quarter results today at 8:30 a.m. Eastern Time. Interested parties are invited
to listen to the call by dialing (785) 830-7975 and providing the Conference
ID,
PLCE. The call will also be webcast live and can be accessed via the Company’s
web site, www.childrensplace.com.
A
replay of the call will be available approximately one hour after the conclusion
of the call, until midnight on February 8, 2007. To access the replay, please
dial (402) 220-0489, or you may listen to the audio archive on the Company’s
website, www.childrensplace.com.
The
Children’s Place Retail Stores, Inc. is a leading specialty retailer of
children’s merchandise. The Company designs, contracts to manufacture and sells
high-quality, value-priced merchandise under the proprietary “The Children’s
Place” and licensed “Disney Store” brand names. As of December 30, 2006, the
Company owned and operated 866 The Children’s Place stores and 334 Disney Stores
in North America and The Children’s Place online store at www.childrensplace.com.
This
press release and above referenced call may contain certain forward-looking
statements regarding future circumstances. These forward-looking statements
are
based upon the Company’s current expectations and assumptions and are subject to
various risks and uncertainties that could cause actual results to differ
materially from those contemplated in such forward-looking statements including,
in particular, the risks and uncertainties described in the Company’s filings
with the Securities and Exchange Commission, as well as the risks and
uncertainties relating to the Company's stock option grants and procedures
and
the recently completed investigation by the special committee of the Company’s
Board of Directors, the previously announced pending restatement of the
Company’s historical financial statements, the delays in filing the Company’s
periodic reports with the Securities and Exchange Commission, the outcome of
the
informal investigation of the Company being conducted by the Securities and
Exchange Commission, potential other governmental proceedings,
the
shareholder litigation commenced against the Company and certain of its officers
and directors,
and the potential impact of each
of these matters on the Company, as well as matters relating to the Company’s
discussions with The Walt Disney Company. Actual
results, events, and performance may differ. Readers or listeners (on the call)
are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date hereof. We undertake no obligation to release
publicly any revisions to these forward-looking statements that may be made
to
reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events. The inclusion of any statement in this
release does not constitute an admission by The Children's Place or any other
person that the events or circumstances described in such statement are
material.
| Contact: | The Children’s Place Retail Stores,
Inc.
Susan
Riley, EVP, Finance & Administration, 201/558-2400
Heather
Anthony, Senior Director, Investor Relations, 201/558-2865
|
(Tables
Follow)
THE
CHILDREN’S PLACE RETAIL STORES, INC.
PRELIMINARY
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(In
thousands)
(Unaudited)
|
13
Weeks Ended
October 28, 2006
|
%
of
Sales
|
||||||
| Net sales | $ | 550,410 | 100.0 | % | |||
| Cost of sales | 309,930 | 56.3 | % | ||||
| Gross profit | 240,480 | 43.7 | % | ||||
| Selling, general and administrative expenses | 163,336 | 29.7 | % | ||||
| Depreciation and amortization | 16,129 | 2.9 | % | ||||
| Operating income | 61,015 | 11.1 | % | ||||
| Interest income, net | 670 | 0.1 | % | ||||
| Income before income taxes | 61,685 | 11.2 | % | ||||
| Provision for income taxes | 23,689 | 4.3 | % | ||||
| Net income | $ | 37,996 | 6.9 | % | |||
THE
CHILDREN’S PLACE RETAIL STORES, INC.
SELECTED
CONSOLIDATED BALANCE SHEET DATA
(In
thousands)
(Unaudited)
|
October
28, 2006
|
January
28, 2006
|
October
29, 2005
|
||||||||
| Cash and cash equivalents | $ | 147,257 | $ | 173,323 | $ | 122,428 | ||||
| Inventories | 302,394 | 214,702 | 261,160 | |||||||
| Revolving credit facility | 0 | 0 | 55,299 | |||||||
| Accounts payable | 127,673 | 82,826 | 87,282 | |||||||
Note:
The
October 29, 2005 balance sheet includes the retrospective application of FSP
FAS
13-1.
THE
CHILDREN’S PLACE RETAIL STORES, INC.
PRELIMINARY
SEGMENT INFORMATION
(In
millions)
(Unaudited)
|
Thirteen
Weeks Ended October 28, 2006
|
|||||||||||||
|
The
Children’s
Place
|
Disney
Store
|
Shared
Services
|
Total
Company
|
||||||||||
|
Net
sales
|
$
|
397.2
|
$
|
153.2
|
$
|
-
|
$
|
550.4
|
|||||
|
Segment
operating profit (loss)
|
78.5
|
10.4
|
(27.9
|
)
|
61.0
|
||||||||
|
Operating
profit as a percent of net sales
|
19.8
|
%
|
6.8
|
%
|
N/A
|
11.1
|
%
|
||||||
###
THE
CHILDREN’S PLACE RETAIL STORES, INC. CONCLUDES
STOCK
OPTIONS INVESTIGATION
-
Company Implements Various Structural Changes -
-
Company Commits to Improved Internal Processes and Procedures
-
-
Company Outlines Financial Impact of Investigation -
SECAUCUS,
N. J., January 31, 2007 - The Children’s Place Retail Stores, Inc. (Nasdaq:
PLCE) announced today that the special committee of its Board of Directors,
previously appointed to investigate the Company’s stock option granting
practices, has completed its investigation. The special committee today
presented to the Board of Directors its report of investigation and
recommendations and the Board of Directors has accepted the report and approved
the findings and recommendations.
Summary
of Investigation and Key Findings
The
comprehensive investigation was directed by a special committee of the Board
of
Directors and was undertaken in conjunction with independent legal counsel
from
Weil Gotshal & Manges LLP and forensic accounting assistance from FTI
Consulting, Inc. During the two month independent investigation, which continued
an earlier investigation commenced in August 2006, all the Company’s option
grants since the Company’s IPO in 1997 through the last grant made by the
Company in February 2006, involving grants on more than 120 occasions, were
considered. Based on statistical analysis and other information obtained in
the
investigation, 21 grants were analyzed in detail. The investigation involved
the
review and analysis of tens of thousands of emails and other documents,
including the restoration of documents to the extent available from the
Company’s information technology systems, and included interviews of 14 current
and former officers, directors, and employees of the Company.
The
special committee’s report included the following key findings:
| · |
There
was no conclusive evidence of intentional backdating of options or
other
misconduct in connection with the option grant
process.
|
| · |
There
was no evidence of an intent to mislead about option grant dates or
exercise prices.
|
| · |
No
member of management and no director engaged in improper self-dealing
in
connection with the option grants made by the
Company.
|
| · |
All
Company personnel cooperated fully with the
investigation.
|
| · |
The
Company did not maintain appropriate governance and other internal
controls, which resulted in errors in the dating of options and other
irregularities in option grants. In many instances options were dated
before all grant-making
processes were finalized. Consequently, in such instances the option
exercise price was lower than it should have been based on the trading
price on the date the grant process was completed and incorrect charges
were taken for the options for financial reporting purposes. Also,
in a
few instances, the Company may have selected grant dates with a view
toward upcoming disclosures.
|
A
copy of
the report is also being provided to the SEC in connection with the previously
announced informal investigation by the SEC of the Company’s option grant
practices.
Key
Near-Term Actions
Following
specific recommendations by the special committee, the Board of Directors will
implement the following initiatives to improve the Company’s governance,
internal controls and option grant practices:
Governance
and Management Changes:
| · |
The
positions of Chair of the Board and Chief Executive Officer will be
separated, effective immediately. An independent director will be selected
to serve as non-executive Chair of the Board as soon as practicable.
Sally
Frame Kasaks, currently the Lead Director, will continue in such position
and act as Interim Chair until a permanent Chair is selected. Ezra
Dabah
will continue as Chief Executive Officer and as a member of the Board
of
Directors.
|
| · |
The
Board of Directors will be expanded to include two new independent
directors, as soon as practicable. It is anticipated that, after this
expansion of the Board of Directors, an independent director will be
selected to serve as Chair of the Board on an ongoing
basis.
|
| · |
The
new position of Executive Vice President, Finance and Administration
has
been established and Susan Riley, the Company’s Senior Vice President and
Chief Financial Officer, since April 2006, has been elected to this
position. Ms. Riley will be responsible for supervising the Company’s
finance, treasury, accounting, legal and human resource functions,
reporting to the Chief Executive Officer and the Board of Directors.
|
| · |
At
the Board of Directors’ request, Steve Balasiano has relinquished his
responsibilities as Chief Administrative Officer, General Counsel and
Secretary, effective immediately. However, Mr. Balasiano will continue
as
a Senior Vice President with supervisory responsibility for the Company’s
real estate, construction and facilities, store design, and
non-merchandise purchasing. The Company will commence a search for
a new
General Counsel and Secretary
immediately.
|
| · |
The
Board of Directors has commenced a comprehensive review, with the
assistance of independent counsel, of the Company’s governance system and
processes and its internal controls, and will make appropriate
improvements in the near-term.
|
2
New
Option Grant Practices and Amended Option Grants:
| · |
Under
the supervision of the Compensation Committee, the Company will institute
new policies, procedures and controls governing the grant of options
and
other equity incentives and related accounting and internal controls
based
on recognized best practices. No further equity grants will be made
until
these new policies, procedures and controls are
instituted.
|
| · |
To
avoid any potential for benefit from the errors made in the option
grant
process, all non-management members
of the board of directors, and Messrs. Dabah, Balasiano and Neal
Goldberg, executive
officers of the Company, have voluntarily agreed to increase the exercise
price of each of their outstanding options to the trading price on
the
correct measurement date for the option grants for financial reporting
purposes as determined by the Company. In addition, any
non-management director
who received an option grant that was not implemented in accordance
with
best practices has agreed to increase further the exercise price of
such
options to the average of the highest and lowest closing price of the
shares during the remainder of the year of grant, even though such
price
may be above the trading price on the correct measurement date of the
grant.
|
| · |
The
Company intends to honor all other original option grants made to
employees but expects to make an offer to the holders of options that
vested after 2004 to amend their options so as to increase the exercise
price to the trading price on the correct measurement date determined
by
the Company (or in certain instances to make certain other amendments
limiting the holders’ rights under the options). In addition, as part of
such offer, the Company will pay to such employees,
other than members of senior
management, cash bonuses in the amount of the difference. These amendments
to outstanding options are expected to permit the holders to qualify
under
certain transitional tax rules, so that an excise tax and certain other
unfavorable tax consequences instituted in 2004 that might otherwise
apply
to such options will not be applicable.
|
Ms.
Kasaks, the Lead Director, stated, “We are very pleased that after an exhaustive
review we have brought the investigation to a conclusion. We believe that the
Board’s actions will position The Children’s Place as a leader in adopting and
executing best practices in governance, compensation policies, and internal
controls and will enable the Company to maintain its position as one of the
nation’s leading children’s specialty retailers. We have full confidence in
Chief Executive Officer, Ezra Dabah, who has done an extraordinary job in
growing and evolving the Company’s business for more than a decade. We believe
that under Ezra’s able leadership, along with the help of Sue Riley in her new
position and the full talented management team, the Company will be stronger
and
more successful than ever.”
Ezra
Dabah, Chief Executive Officer of the Company, added, “The thorough
investigation by the special committee brought to the Company’s attention
various errors in our option granting process, which we are committed to
correcting. I regret that this happened on my watch and, as CEO, I take
responsibility. As a Board, the actions we are taking today will strengthen
the
Company’s ability to expand its business as one of the nation’s leading
children’s specialty retailers and to become a leader in adopting and executing
best practices in governance, internal controls and compensation policies.
We
look forward to working together to maximize shareholder value.”
3
Summary
of Financial Implications
Based
on
the results of the investigation and its own additional review, management
has
concluded that incorrect measurement dates were used for financial reporting
purposes in respect to option grants. As previously announced, the Company
will
restate its previously issued financial statements for the fiscal years 2003,
2004, 2005 and the first fiscal quarter 2006 and may amend the financials
disclosed in its fiscal 2006 second quarter press release. At this time, the
Company does not expect this cumulative restatement to exceed $24 million,
pre-tax, or $17 million, after tax, with the majority of the restatement
impacting fiscal 2005. Approximately $22 million of the total pre-tax
restatement amount is expected to be non-cash. As stated previously, the amounts
of the restatement and related expenses are subject to significant adjustment
pending the review of the Company’s determination of the appropriate accounting
for its previously issued stock options, related discussions with the staff
of
the SEC, and clarification of certain tax laws and their accounting impact.
The
Company intends to complete the restatement of its financial statements as
soon
as practicable. There is no assurance that, when finally determined, the Company
will not be required to make adjustments in a greater amount.
At
this
time, the Company also expects to incur in fiscal 2006 costs in connection
with
the investigation estimated at approximately $7 million. As recently announced,
the Company and certain of its current and former directors and officers have
been named as defendants in a lawsuit relating to the Company’s past option
grant practices. The costs and any potential liabilities that the Company may
incur in connection with such lawsuit and the pending SEC investigation have
not
been included in the charges and costs referred to above.
The
Company plans to report its preliminary information regarding its financial
results for the fiscal third quarter ended October 28, 2006 shortly.
The
Children’s Place Retail Stores, Inc. is a leading specialty retailer of
children’s merchandise. The Company designs, contracts to manufacture and sells
high-quality, value-priced merchandise under the proprietary “The Children’s
Place” and licensed “Disney Store” brand names. As of December 30, 2006, the
Company owned and operated 866 The Children’s Place stores and 334 Disney Stores
in North America and The Children’s Place online store at www.childrensplace.com.
4
This
press release contains certain forward-looking statements regarding future
circumstances. These forward-looking statements are based upon the Company’s
current expectations and assumptions and are subject to various risks and
uncertainties that could cause actual results to differ materially from those
contemplated in such forward-looking statements including, in particular, the
risks and uncertainties described in the Company’s filings with the Securities
and Exchange Commission. Actual
results, events, and performance may differ. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only as of
the
date hereof. The Company undertake no obligation to release publicly any
revisions to these forward-looking statements in order to reflect events or
circumstances after the date hereof. The inclusion of any statement in this
release does not constitute an admission by the Company or any other person
that
the events or circumstances described in such statement are
material.
| CONTACTS: |
The
Children’s Place Retail Stores, Inc.
Heather Anthony, Senior Director,
Investor
Relations, (201) 558-2865
Susan
LaBar, Manager, Investor Relations, (201) 453-6955
Media:
Financial
Dynamics
Hollis
Rafkin-Sax/Kal Goldberg, (212)
850-5600
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5